But hold on a minute. How badly are they getting whipped? How does it look on a risk-adjusted basis? And are there factors that could prompt a turnaround? Answers: Not as bad as you may think. Not so bad on a risk-adjusted basis. And yes, the picture could change in ways that favor active managers.

R.W. Baird & Co.’s Aaron Reynolds finds this week that the large percentage of active managers who trail the S&P 500′s (SPY) 38% or so gain since 2010 still managed to capture 90 percent of the index’s very favorable returns. At first blush, that may sound like a bad deal.

About Focus on Funds

As exchange-traded funds and other investing vehicles have ballooned in number, the task of figuring out what works well and what doesn’t has only gotten harder. Barrons.com’s Focus on Funds looks under the hood of ETFs, mutual funds and hedge funds for overlooked values, actionable ideas and the latest pitfalls for fund investors.